3 Reasons Most People Never Make Money in the Stock Market. 5 Steps you MUST know before spending another Rand

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Alannah Haynes
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1 3 Reasons Most People Never Make Money in the Stock Market 5 Steps you MUST know before spending another Rand

2 Thank you for arriving early! The talk will begin shortly.

3 Thank you for arriving early! The talk will begin shortly.

4 Thank you for arriving early! The talk will begin shortly.

5 3 Reasons Most People Never Make Money in the Stock Market 5 Steps you MUST know before spending another Rand

8 What s the hardest part about making money in the market?

9 95% fail

10 CORE PROBLEMS

11 Problem #1

13 Successful people concentrate on doing their job well.

14 Successful traders DON T treat trading as a hobby.

15 Your Goal = Make the Best Trades

16 Focus on the process Don t be concerned with the fruit of your action The fruit will come of its own accord.

17 Problem #2

19 Have you ever said: Hope I know it s down now, but it will come back. It s already down 20%, I might as well hold onto it now. Despair I have a profit, but if I close now it will probably Greed keep going up. I know I lost more than Fear I thought, but if I close now it will probably go up tomorrow. Frustration The last time I sold a stock, it kept going up. So I m not selling this one yet.

22 Problem #3

23 Market Direction is 80% of the task

25 Step #1 Take Personal Responsibility

27 Your Goal = Make the Best Trades

28 Trading Discipline Success is actually a short race.a sprint fueled by discipline just long enough for the habit to kick in and take over.

29 Remember: Bad things can happen when you think of the money first.

30 Step #2 Minimize Losses

32 Risk Management Guidelines Never risk any more than 10% of your account on any one trade. Limit your loss to no more than 1% of the 10%.

33 Step #3 Make a Plan & WRITE IT DOWN & Follow It!

34 Your plan should have three components. When to Buy What to Buy When to Sell

35 The faintest ink is better than the best memory.

36 WHAT TO BUY 1. What criteria will I use to enter a trade? 2. How many stocks will I buy at once? 3. How much will I invest in each stock?

37 What to BUY VectorVest does this really well. I can search for Undervalued stocks that are growing earnings aggressively and safely. I look for a RV> 1.25 RS> 1.15 GRT>15% and rising E.g. SASOL

38 Sasol

39 WHEN TO BUY What will trigger me to enter the market?

40 A Universal and Practical trading system The Spring system is my main method of short term swing trading in the Forex and stock market. If followed diligently it produces many fine trades a month It can be traded with the trend and using shares with good fundamentals as defined by VectorVest. I use it on H4 charts of the Dow Cash and Forex and on daily charts of stocks. The method works well on m30 charts of the Dax.

41 A Universal and Practical trading system The system is simple and finds extremes in any market in any timeframe The system then looks for a reversal at this extreme which is confirmed by a reversal pattern defined by a candle or bar chart pattern. Invariably the reversal will be at a FIB level although NO knowledge of FIB patterns is required to make money with this system In many occasions the reversal will occur at a double bottom. This was referred to by MR Gann as Lost Motion

42 A Universal and Practical trading system An extreme is defined as a market that s trading above or below a 21 period high or low respectively. At the point a reversal pattern from a candle is used to initiate a position.

43 The Spring Trade

44 A Universal and Practical trading system The Spring Trade

45 The Spring Trade

46 The Spring Trade

47 The Spring Trade

48 21 day Low trade

49 The Spring Trade

50 AB=CD trade The share pulls back to an old high The share is trading above the 89 day average The fundamentals are good The general market is rising The stochastic is less than 20 The stochastic is showing reverse divergence with price.

51 Telkom

52 Sasol

53 Netcare

54 WHEN TO SELL 1. What will trigger me to exit the market? Am I using leverage. 2. What will be my stop criteria? Ex 10% trailing stop 3. What is my profit target? What will I do when my profit target is hit? Ex 30% gain, if hit I will sell half my positions and tighten stops to 10% below current price

55 Step #4 Buy Safe, Undervalued Stocks Rising in Price

56 Good portfolio management starts with buying the right stocks. - Dr. Bart A. DiLiddo Founder, VectorVest Inc.

57 Keep this in mind 1. Find the best stocks for your portfolio 2. Manage them well 3. Use a watch list.

58 Before buying any stocks: Stock price is steadily rising & not volatile Company is making money and growing their earnings Favor undervalued stocks

59 1 2 3

60 Rising Earnings Drive Prices Higher

61 Favor Undervalued Companies Value

62 Before buying any stocks: Stock price is steadily rising & not volatile Company is making money and growing their earnings Favor undervalued stocks

63 Step #5 Trade With The Market

64 Step #5 Trade With The Market

65 Trade with the market The shorts have been hammered

66 5 Steps To Success 1. Take Personal Responsibility 2. Establish Risk Management 3. Make A Plan, Write It Down & Follow It 4. Buy Safe, Undervalued Stocks Rising In Price 5. Trade With The Market

67 The Choice

68 Do It Alone

71 Give us 60 Days And we ll use VectorVest to turn your portfolio around (Even if you never had success or limited experience in the market) Make money with VectorVest for 60 days A 2 day Investment Seminar A copy of DR D,s green book and roadmap Full access to the VectorVest University $9.95$

72 Satisfaction Guaranteed

73 Clear Market Entry & Exit Signals Access to both SA and US markets Saves You Time $ Value

74 Simple, effective way to manage your portfolio Know when it is safe to buy stocks Easily find safe, undervalued stocks rising in price Save enormous amounts of time Protect your nest egg - know when to exit the market The best insurance policy for your portfolio PLUS a Full Guarantee Only $9.95

Ed Heath s Guerilla Swing Trading Plan (as of 1/22/13)

Ed Heath s Guerilla Swing Trading Plan (as of 1/22/13) Synopsis: I call my trading style Guerilla Swing Trading. I trade upward momentum stocks that have pulled back for a buying opportunity and my goal